Ownership Issues

Some important ownership issues to consider in an equity share arrangement include:

Title: The deed should define the relationship of each owner as it relates to each owner. This means that married couples need to be defined as such, TIC owners defined as such, and so forth.Tenancy in Common: Equity sharing agreements are often set up as TIC's. This is to ensure that, upon loan default by one owner, the other owners property can not be seized during foreclosure. The other reason TIC's are common relates to ownership rights upon death of an owner. A TIC ensures that upon death, ownership passes to the owners heirs and not to the other owners of the property.